The best non-cash employee benefits
To cement your business as an employer that values its workforce, it’s important to not just offer your employees a decent salary and bonus and expect that to be enough. While money is a key consideration for employees and future employees, the overall package you provide will be what transforms a new starter into a loyal employee. As part of this, you need to consider which non-cash employee benefits to offer your employees.
Anything from cinema tickets and flexible working hours to a workplace pension or salary sacrifice scheme – the greater the range of benefits, the better.
In this post, we’re going to explore the best non-cash benefits for employees, including what they are, why they’re important and what your business should consider implementing to keep employees engaged, satisfied and loyal.
What are non-cash employee benefits?
Non-cash employee benefits, otherwise known as non-monetary incentives or perks, are a form of compensation offered to employees in addition to their salaries. They’re used to ensure employees feel valued, appreciated and seen as more than just a number. In return, employees are more likely to be engaged, efficient and productive, which ensures they’re delivering their very best work.
Non-cash benefits can take many different forms, from gym memberships to private healthcare. They’re meant to appeal to the wants and needs of your employees to help their physical and mental health, as well as help their money go further.
What are the benefits of non-monetary incentives?
Employers and employees have a two-way relationship, and the success of one directly feeds into the other. Yes employees may turn up and work if offered nothing but their basic salary, but they won’t be as engaged or efficient as they might be with additional, non-monetary incentives. And there’s nothing wrong with this – it’s human nature. The more employees receive, the more likely they are to go the extra mile.
The benefits are felt across your organisation. Not only will your employees feel the effects, but your entire business will reap the rewards of:
- Greater job satisfaction
- More engagement and motivation
- Greater employee health and wellbeing
- Enhanced job satisfaction
- More loyalty
- Improved work ethic
- Better work-life balance
- Positive workplace culture
- More innovation and creativity
- Increased flexibility
- Less employee turnover
- Attract top industry talent
5 of the best non-cash employee benefits to reward your employees
Non-cash employee benefits are designed to be entertaining, help employees use their money more effectively and – ultimately – make their lives that bit easier. They can be small, like free tea and coffee at the office, or they can be large, like childcare vouchers.
Here are five of the best non-cash employee benefits your organisation can offer its people.
1. Car salary sacrifice scheme
Getting to and from work is much easier if your employees have access to a new and reliable car. Unfortunately, leases can be restrictive and buying is expensive, which means a lot of employees won’t have many options. A salary sacrifice scheme offers every employee a flexible and affordable way to get behind the wheel of a brand-new car. Plus, with an electric car salary sacrifice scheme, there’s the added benefit of driving a car that’s far more affordable and reliable to run, too.
Through salary sacrifice, employees can save as much as 60% off the cost of an EV subscription, meaning they can save money in multiple ways while ensuring a far smaller environmental impact.
As well as benefiting your employees, it also means your business is doing its part to lower its carbon footprint. It also has the added benefit of having a net zero cost to your business. For more information read our employer guide to salary sacrifice.
2. Flexible work arrangements
If the pandemic taught employers one thing, it’s that employees are capable of working remotely. Switching to a fully remote work environment might not necessarily be the way forward for the majority of employers, but offering employees the flexibility to work from home, pop out for a longer lunch break or pick up a child from school goes a long way to creating a happier and less stressed workforce. It also helps employees have a better work-life balance, which increases focus and productivity.
3. Wellness programmes
Even with a solid work-life balance and plenty of learning opportunities, employees can still experience challenges with their mental and physical health. As a result, opportunities to develop their wellness can go a long way towards protecting the mental and physical health of your employees.
This includes gym memberships, fitness classes, mental health workshops, counseling sessions, mental health resources and more. You can even offer employees additional ‘mental health time’, which can be just a couple hours a week that employees can use for self-care.
4. Health benefits
Certain health benefits are required by law, such as sick pay, however, additional benefits can help employees receive a greater range of healthcare more in line with their budget and in a shorter period of time. Private medical insurance can help employees receive care as and when they need it, which not only helps protect their health, but can lessen absenteeism.
As the NHS struggles to meet patients’ demands, providing employees with health insurance gives them added peace of mind.
5. Workplace pensions
In the UK, automatic enrolment in workplace pension schemes has been mandatory for over a decade. However, it’s still an important non-cash benefit as it boosts employees’ pension pots which ensures they pay less income tax and NICs while taking home a little more pay every month.
An employee can opt out of the scheme, but it’s not recommended that they do. It’s also not something that an employer should encourage employees to do. By law, employers must enrol employees in a workplace pension scheme.
Offer your employees an EV through a salary sacrifice scheme
A salary sacrifice scheme is a fantastic way for employers to offer a no-cost benefit to their employees that enables them to get something they want or need while paying much less.
At elmo, we help employers offer their employees an electric car via salary sacrifice, meaning they could save up to 60% off the cost of an EV subscription. So, not only do they get to drive their own EV, which is already a far cheaper option than a petrol or diesel car, but they’ll save even more money in the process.
Your business will also do its part by helping the environment. For more information, contact us today.
Which employee benefits are tax free?
Tax-free employee benefits include: Cycle schemes, mileage allowances, meals, sports facilities, childcare arrangements, relocation expenses, work mobile phone, christmas parties and workplace parking.
What are benefits-in-kind?
Benefit-in-kind (BiK) relates to the tax employees pay when they receive non-cash benefits, such as a company car or healthcare. For more information read our guide to benefit-in-kind tax.